US Egg Prices Soar... But Why Are Chicken Meat Prices Falling?

40 Million Laying Hens Dead from Highly Pathogenic AI
Broiler Chickens with Short Lifespan Less Susceptible to AI Infection

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] As egg prices in the United States have surged nearly 50% compared to last year, intensifying the egg crisis, attention is focusing on the background as chicken prices, which had been rising sharply along with grain prices, have slightly declined.

The main cause of the price surge is attributed to the mass culling of laying hens due to the highly pathogenic avian influenza (AI) spreading mainly in the U.S. In contrast, broiler chickens, which have a relatively lower risk of AI infection, were less affected, and prices fell as grain supply stabilized.

U.S. Egg Prices Soar 49.1%... 40 Million Hens Culled

[Image source=Reuters Yonhap News]

According to CNBC on the 29th (local time), the U.S. Bureau of Labor Statistics reported that the average egg price increase last month was 49.1% year-over-year, far exceeding the average food price increase of 12%.

The main reason for the egg price surge is analyzed to be the impact of AI spreading across the U.S. According to the U.S. Department of Agriculture, the total number of birds that died from AI infection this year in the U.S. was 57.8 million. Among them, more than 40 million laying hens were culled, accounting for the highest proportion.

As a result, egg production in the U.S. dropped significantly. Last month, egg production in the U.S. was 8.87 billion eggs, showing a 5% decrease compared to the same month last year.

Generally, highly pathogenic AI is known to rage during the summer and subside from autumn, but this year, due to rising average temperatures, a large outbreak occurred in September, raising concerns that it will affect the first quarter of next year.

Broiler Chickens with Short Growth Period Less Affected by AI... Prices Fall for Two Consecutive Months

[Image source=AP Yonhap News]

On the other hand, chicken prices in the U.S. have fallen for two consecutive months. According to the U.S. Consumer Price Index (CPI), chicken prices last month fell 0.8% compared to the previous month, following a 1.3% drop in October, showing a continuous downward trend. This is analyzed to be because broiler chickens raised for meat are relatively less affected by AI compared to laying hens.

According to CNBC, broiler chickens generally have a growth period of 5 to 9 weeks, so their survival period until slaughter is short, reducing the risk of AI infection compared to laying hens. Laying hens have a growth period of over 100 weeks and are raised in large numbers in confined barns for a long time, making them much more susceptible to AI infection.

Broiler chicken prices surged earlier this year due to rising feed grain prices following the Ukraine war but have since stabilized. The Food and Agriculture Organization (FAO) of the United Nations announced on the 3rd that the global food price index was 135.7, similar to 135.6 in January this year before the Ukraine war.

The global food price index peaked at 159.7 in March this year, right after the outbreak of the Ukraine war. At that time, Russia and Ukraine engaged in battles and blockades at major grain ports in the Black Sea, causing prices to soar. However, prices fell as the two countries signed a grain export agreement and U.S. logistics conditions improved.

This content was produced with the assistance of AI translation services.